State of Illinois
91st General Assembly
Public Acts

[ Home ]  [ ILCS ] [ Search ] [ Bottom ]
 [ Other General Assemblies ]

Public Act 91-0093

SB175 Enrolled                                LRB9101183NTsbA

    AN ACT to amend  the  School  Code  by  changing  Section
18-8.05.

    Be  it  enacted  by  the People of the State of Illinois,
represented in the General Assembly:

    Section 5.   The  School  Code  is  amended  by  changing
Section 18-8.05 as follows:

    (105 ILCS 5/18-8.05)
    Sec.  18-8.05.  Basis  for apportionment of general State
financial aid and  supplemental  general  State  aid  to  the
common schools for the 1998-1999 and subsequent school years.

(A)  General Provisions.
    (1)  The   provisions   of  this  Section  apply  to  the
1998-1999 and subsequent school years.  The system of general
State financial aid provided for in this Section is  designed
to  assure that, through a combination of State financial aid
and required local resources, the financial support  provided
each  pupil  in  Average Daily Attendance equals or exceeds a
prescribed per pupil Foundation Level.  This formula approach
imputes a level of per pupil Available  Local  Resources  and
provides  for  the  basis  to  calculate a per pupil level of
general State financial aid that,  when  added  to  Available
Local Resources, equals or exceeds the Foundation Level.  The
amount  of  per  pupil general State financial aid for school
districts,  in  general,  varies  in  inverse   relation   to
Available  Local Resources.  Per pupil amounts are based upon
each school district's Average Daily Attendance as that  term
is defined in this Section.
    (2)  In  addition  to general State financial aid, school
districts with specified levels or concentrations  of  pupils
from   low   income   households   are  eligible  to  receive
supplemental general State financial aid grants  as  provided
pursuant to subsection (H). The supplemental State aid grants
provided  for  school districts under subsection (H) shall be
appropriated for distribution to school districts as part  of
the  same  line item in which the general State financial aid
of school districts is appropriated under this Section.
    (3)  To receive financial assistance under this  Section,
school  districts  are required to file claims with the State
Board of Education, subject to the following requirements:
         (a)  Any school district which fails for  any  given
    school  year to maintain school as required by law, or to
    maintain a recognized school is not eligible to file  for
    such  school  year any claim upon the Common School Fund.
    In case of  nonrecognition  of  one  or  more  attendance
    centers   in   a   school  district  otherwise  operating
    recognized schools, the claim of the  district  shall  be
    reduced   in  the  proportion  which  the  Average  Daily
    Attendance in the attendance center or  centers  bear  to
    the  Average  Daily Attendance in the school district.  A
    "recognized school" means any public school  which  meets
    the standards as established for recognition by the State
    Board  of  Education.   A  school  district or attendance
    center not having recognition status  at  the  end  of  a
    school term is entitled to receive State aid payments due
    upon   a  legal  claim  which  was  filed  while  it  was
    recognized.
         (b)  School district claims filed under this Section
    are subject to Sections 18-9, 18-10, and 18-12, except as
    otherwise provided in this Section.
         (c)  If a  school  district  operates  a  full  year
    school  under  Section  10-19.1, the general State aid to
    the school district shall  be  determined  by  the  State
    Board  of  Education  in  accordance with this Section as
    near as may be applicable.
         (d) (Blank).
    (4)  Except as provided in subsections (H) and  (L),  the
board  of  any  district receiving any of the grants provided
for in this Section may apply those  funds  to  any  fund  so
received   for   which  that  board  is  authorized  to  make
expenditures by law.
    School districts are not  required  to  exert  a  minimum
Operating  Tax  Rate in order to qualify for assistance under
this Section.
    (5)  As used in this Section the  following  terms,  when
capitalized, shall have the meaning ascribed herein:
         (a)  "Average  Daily  Attendance":  A count of pupil
    attendance  in  school,  averaged  as  provided  for   in
    subsection   (C)  and  utilized  in  deriving  per  pupil
    financial support levels.
         (b)  "Available Local Resources":  A computation  of
    local  financial  support,  calculated  on  the  basis of
    Average Daily Attendance and derived as provided pursuant
    to subsection (D).
         (c)  "Corporate   Personal   Property    Replacement
    Taxes":  Funds paid to local school districts pursuant to
    "An  Act  in  relation  to  the  abolition  of ad valorem
    personal property tax and  the  replacement  of  revenues
    lost thereby, and amending and repealing certain Acts and
    parts  of Acts in connection therewith", certified August
    14, 1979, as amended (Public Act 81-1st S.S.-1).
         (d)  "Foundation Level":  A prescribed level of  per
    pupil  financial  support  as  provided for in subsection
    (B).
         (e)  "Operating  Tax  Rate":   All  school  district
    property taxes extended for all purposes, except Bond and
    Interest, Summer School, Rent, Capital  Improvement,  and
    Vocational Education Building purposes.

(B)  Foundation Level.
    (1)  The  Foundation Level is a figure established by the
State representing the minimum level of per  pupil  financial
support  that  should  be  available to provide for the basic
education of each pupil in Average Daily Attendance.  As  set
forth  in  this  Section,  each school district is assumed to
exert  a  sufficient  local  taxing  effort  such  that,   in
combination with the aggregate of general State financial aid
provided  the  district,  an  aggregate  of  State  and local
resources are available to meet the basic education needs  of
pupils in the district.
    (2)  For  the 1998-1999 school year, the Foundation Level
of support is $4,225.  For the  1999-2000  school  year,  the
Foundation  Level  of  support  is $4,325.  For the 2000-2001
school year, the Foundation Level of support is $4,425.
    (3)  For the 2001-2002 school year and each  school  year
thereafter, the Foundation Level of support is $4,425 or such
greater  amount  as  may be established by law by the General
Assembly.

(C)  Average Daily Attendance.
    (1)  For  purposes  of  calculating  general  State   aid
pursuant  to  subsection  (E),  an  Average  Daily Attendance
figure shall  be  utilized.   The  Average  Daily  Attendance
figure  for formula calculation purposes shall be the monthly
average of the actual number of pupils in attendance of  each
school district, as further averaged for the best 3 months of
pupil  attendance for each school district.  In compiling the
figures for  the  number  of  pupils  in  attendance,  school
districts  and  the  State  Board  of  Education  shall,  for
purposes  of  general  State  aid funding, conform attendance
figures to the requirements of subsection (F).
    (2)  The Average Daily  Attendance  figures  utilized  in
subsection (E) shall be the requisite attendance data for the
school  year  immediately preceding the school year for which
general State aid is being calculated.
(D)  Available Local Resources.
    (1)  For  purposes  of  calculating  general  State   aid
pursuant  to  subsection  (E),  a representation of Available
Local Resources per  pupil,  as  that  term  is  defined  and
determined  in this subsection, shall be utilized.  Available
Local Resources per pupil shall include a  calculated  dollar
amount representing local school district revenues from local
property   taxes   and   from   Corporate  Personal  Property
Replacement Taxes,  expressed  on  the  basis  of  pupils  in
Average Daily Attendance.
    (2)  In  determining  a  school  district's  revenue from
local property taxes, the  State  Board  of  Education  shall
utilize  the  equalized  assessed  valuation  of  all taxable
property of each school district as of September  30  of  the
previous  year.   The  equalized  assessed valuation utilized
shall be obtained and determined as  provided  in  subsection
(G).
    (3)  For school districts maintaining grades kindergarten
through  12,  local  property tax revenues per pupil shall be
calculated  as  the  product  of  the  applicable   equalized
assessed  valuation for the district multiplied by 3.00%, and
divided by the district's Average  Daily  Attendance  figure.
For  school districts maintaining grades kindergarten through
8, local property tax revenues per pupil shall be  calculated
as the product of the applicable equalized assessed valuation
for  the  district  multiplied  by  2.30%, and divided by the
district's  Average  Daily  Attendance  figure.   For  school
districts maintaining grades 9 through 12, local property tax
revenues per pupil shall be the applicable equalized assessed
valuation of the district  multiplied  by  1.05%  1.20%,  and
divided by the district's Average Daily Attendance figure.
    (4)  The  Corporate  Personal  Property Replacement Taxes
paid to each school district during the calendar year 2 years
before the calendar year  in  which  a  school  year  begins,
divided  by  the  Average  Daily  Attendance  figure for that
district, shall be added to the local property  tax  revenues
per  pupil  as  derived by the application of the immediately
preceding paragraph (3).  The sum of these per pupil  figures
for  each  school  district  shall constitute Available Local
Resources as that term is utilized in subsection (E)  in  the
calculation of general State aid.

(E)  Computation of General State Aid.
    (1)  For  each  school  year, the amount of general State
aid allotted to a school district shall be  computed  by  the
State Board of Education as provided in this subsection.
    (2)  For  any  school  district for which Available Local
Resources per pupil is less than the product  of  0.93  times
the  Foundation  Level,  general  State aid for that district
shall be calculated as an  amount  equal  to  the  Foundation
Level  minus  Available  Local  Resources,  multiplied by the
Average Daily Attendance of the school district.
    (3)  For any school district for  which  Available  Local
Resources  per  pupil is equal to or greater than the product
of 0.93 times the Foundation Level and less than the  product
of 1.75 times the Foundation Level, the general State aid per
pupil  shall  be a decimal proportion of the Foundation Level
derived  using  a  linear  algorithm.   Under   this   linear
algorithm,  the  calculated general State aid per pupil shall
decline  in  direct  linear  fashion  from  0.07  times   the
Foundation  Level  for a school district with Available Local
Resources equal to the product of 0.93 times  the  Foundation
Level,  to  0.05  times  the  Foundation  Level  for a school
district with Available Local Resources equal to the  product
of  1.75  times  the  Foundation  Level.   The  allocation of
general State  aid  for  school  districts  subject  to  this
paragraph  3  shall  be  the calculated general State aid per
pupil figure multiplied by the Average  Daily  Attendance  of
the school district.
    (4)  For  any  school  district for which Available Local
Resources per pupil equals or exceeds  the  product  of  1.75
times  the  Foundation  Level,  the general State aid for the
school district shall be calculated as the  product  of  $218
multiplied  by  the  Average  Daily  Attendance of the school
district.

(F)  Compilation of Average Daily Attendance.
    (1)  Each school district shall, by July 1 of each  year,
submit  to  the State Board of Education, on forms prescribed
by the State Board of Education, attendance figures  for  the
school  year  that began in the preceding calendar year.  The
attendance information  so  transmitted  shall  identify  the
average daily attendance figures for each month of the school
year,  except  that any days of attendance in August shall be
added to the month of September and any days of attendance in
June shall be added to the month of May.
    Except as otherwise provided in  this  Section,  days  of
attendance  by  pupils  shall be counted only for sessions of
not less than 5 clock hours of  school  work  per  day  under
direct  supervision  of:  (i)  teachers, or (ii) non-teaching
personnel   or   volunteer   personnel   when   engaging   in
non-teaching  duties  and  supervising  in  those   instances
specified in subsection (a) of Section 10-22.34 and paragraph
10  of  Section 34-18, with pupils of legal school age and in
kindergarten and grades 1 through 12.
    Days of attendance by tuition pupils shall be  accredited
only  to  the  districts that pay the tuition to a recognized
school.
    (2)  Days of attendance by pupils of less  than  5  clock
hours  of school shall be subject to the following provisions
in the compilation of Average Daily Attendance.
         (a)  Pupils regularly enrolled in  a  public  school
    for  only  a part of the school day may be counted on the
    basis of 1/6 day for every class hour of  instruction  of
    40 minutes or more attended pursuant to such enrollment.
         (b)  Days  of  attendance  may  be less than 5 clock
    hours on the opening and closing of the school term,  and
    upon  the first day of pupil attendance, if preceded by a
    day  or  days  utilized  as  an  institute  or  teachers'
    workshop.
         (c)  A session of 4  or  more  clock  hours  may  be
    counted  as a day of attendance upon certification by the
    regional  superintendent,  and  approved  by  the   State
    Superintendent  of  Education  to  the  extent  that  the
    district has been forced to use daily multiple sessions.
         (d)  A  session  of  3  or  more  clock hours may be
    counted as a day of attendance (1) when the remainder  of
    the school day or at least 2 hours in the evening of that
    day  is  utilized  for an in-service training program for
    teachers, up to a maximum of 5 days per  school  year  of
    which  a maximum of 4 days of such 5 days may be used for
    parent-teacher conferences, provided a district  conducts
    an  in-service  training  program  for teachers which has
    been approved by the State Superintendent  of  Education;
    or,  in  lieu of 4 such days, 2 full days may be used, in
    which event each such day may be  counted  as  a  day  of
    attendance;  and  (2)  when  days  in  addition  to those
    provided in item (1) are scheduled by a  school  pursuant
    to  its  school improvement plan adopted under Article 34
    or its revised or amended school improvement plan adopted
    under Article 2, provided that (i) such sessions of 3  or
    more  clock  hours  are  scheduled  to  occur  at regular
    intervals, (ii) the remainder of the school days in which
    such sessions occur are utilized for in-service  training
    programs   or  other  staff  development  activities  for
    teachers, and (iii) a sufficient  number  of  minutes  of
    school  work under the direct supervision of teachers are
    added to the school days between such regularly scheduled
    sessions to  accumulate  not  less  than  the  number  of
    minutes  by  which such sessions of 3 or more clock hours
    fall short of 5 clock hours. Any full days used  for  the
    purposes  of  this  paragraph shall not be considered for
    computing average daily attendance.  Days  scheduled  for
    in-service    training    programs,   staff   development
    activities,  or   parent-teacher   conferences   may   be
    scheduled  separately  for  different  grade  levels  and
    different attendance centers of the district.
         (e)  A  session  of  not less than one clock hour of
    teaching of hospitalized or homebound pupils  on-site  or
    by  telephone  to the classroom may be counted as 1/2 day
    of attendance, however these pupils  must  receive  4  or
    more  clock hours of instruction to be counted for a full
    day of attendance.
         (f)  A session of at least  4  clock  hours  may  be
    counted  as  a  day of attendance for first grade pupils,
    and pupils in full day kindergartens, and a session of  2
    or  more hours may be counted as 1/2 day of attendance by
    pupils in kindergartens which provide  only  1/2  day  of
    attendance.
         (g)  For  children  with  disabilities who are below
    the age of 6 years and who cannot attend 2 or more  clock
    hours  because  of  their  disability  or  immaturity,  a
    session of not less than one clock hour may be counted as
    1/2  day  of  attendance; however for such children whose
    educational needs so require a session of 4 or more clock
    hours may be counted as a full day of attendance.
         (h)  A recognized kindergarten  which  provides  for
    only  1/2  day of attendance by each pupil shall not have
    more than 1/2 day of attendance counted in any one 1 day.
    However, kindergartens may count 2 1/2 days of attendance
    in any 5 consecutive school days.  When a  pupil  attends
    such  a  kindergarten  for  2 half days on any one school
    day, the pupil shall have the  following  day  as  a  day
    absent  from  school,  unless the school district obtains
    permission in writing from the  State  Superintendent  of
    Education.  Attendance at kindergartens which provide for
    a  full  day of attendance by each pupil shall be counted
    the same as attendance by first grade pupils.   Only  the
    first  year  of  attendance  in one kindergarten shall be
    counted, except in  case  of  children  who  entered  the
    kindergarten   in  their  fifth  year  whose  educational
    development requires a second  year  of  kindergarten  as
    determined  under  the rules and regulations of the State
    Board of Education.

(G)  Equalized Assessed Valuation Data.
    (1)  For purposes of the calculation of  Available  Local
Resources  required  pursuant  to  subsection  (D), the State
Board of  Education  shall  secure  from  the  Department  of
Revenue  the value as equalized or assessed by the Department
of Revenue of all taxable property of every  school  district
together with the applicable tax rate used in extending taxes
for  the  funds  of  the  district  as of September 30 of the
previous year.
    This equalized assessed valuation, as adjusted further by
the requirements of this subsection, shall be utilized in the
calculation of Available Local Resources.
    (2)  The equalized assessed valuation  in  paragraph  (1)
shall be adjusted, as applicable, in the following manner:
         (a)  For the purposes of calculating State aid under
    this  Section,  with  respect  to  any  part  of a school
    district within a redevelopment project area  in  respect
    to   which  a  municipality  has  adopted  tax  increment
    allocation  financing  pursuant  to  the  Tax   Increment
    Allocation  Redevelopment Act, Sections 11-74.4-1 through
    11-74.4-11  of  the  Illinois  Municipal  Code   or   the
    Industrial  Jobs Recovery Law, Sections 11-74.6-1 through
    11-74.6-50 of the Illinois Municipal Code, no part of the
    current equalized assessed  valuation  of  real  property
    located in any such project area which is attributable to
    an  increase  above  the total initial equalized assessed
    valuation of such property shall be used as part  of  the
    equalized  assessed valuation of the district, until such
    time as all redevelopment project costs have  been  paid,
    as  provided  in  Section  11-74.4-8 of the Tax Increment
    Allocation Redevelopment Act or in Section 11-74.6-35  of
    the Industrial Jobs Recovery Law.  For the purpose of the
    equalized  assessed  valuation of the district, the total
    initial  equalized  assessed  valuation  or  the  current
    equalized assessed valuation, whichever is  lower,  shall
    be  used  until  such  time  as all redevelopment project
    costs have been paid.
         (b)  The real property equalized assessed  valuation
    for  a  school  district shall be adjusted by subtracting
    from the real property value as equalized or assessed  by
    the  Department  of  Revenue  for  the district an amount
    computed by dividing the amount of any abatement of taxes
    under Section 18-170 of the Property Tax  Code  by  3.00%
    for  a  district  maintaining grades kindergarten through
    12,  or  by  2.30%  for  a  district  maintaining  grades
    kindergarten through 8, or by 1.05% 1.20% for a  district
    maintaining grades 9 through 12 and adjusted by an amount
    computed by dividing the amount of any abatement of taxes
    under  subsection  (a)  of Section 18-165 of the Property
    Tax Code by the same percentage rates for  district  type
    as specified in this subparagraph (b) (c).

(H)  Supplemental General State Aid.
    (1)  In  addition  to  the  general  State  aid  a school
district is allotted pursuant to subsection  (E),  qualifying
school  districts  shall receive a grant, paid in conjunction
with  a  district's  payments  of  general  State  aid,   for
supplemental  general  State aid based upon the concentration
level of  children  from  low-income  households  within  the
school  district.  Supplemental State aid grants provided for
school districts under this subsection shall be  appropriated
for distribution to school districts as part of the same line
item  in  which  the  general  State  financial aid of school
districts is appropriated under this Section. For purposes of
this subsection, the term  "Low-Income  Concentration  Level"
shall  be  the  low-income eligible pupil count from the most
recently available federal  census  divided  by  the  Average
Daily Attendance of the school district.
    (2)  Supplemental  general  State  aid  pursuant  to this
subsection shall be provided as follows:
         (a)  For any  school  district  with  a  Low  Income
    Concentration  Level  of  at least 20% and less than 35%,
    the grant for any school year shall be $800 multiplied by
    the low income eligible pupil count.
         (b)  For any  school  district  with  a  Low  Income
    Concentration  Level  of  at least 35% and less than 50%,
    the grant for the 1998-1999 school year shall  be  $1,100
    multiplied by the low income eligible pupil count.
         (c)  For  any  school  district  with  a  Low Income
    Concentration Level of at least 50% and  less  than  60%,
    the  grant  for  the  1998-99 school year shall be $1,500
    multiplied by the low income eligible pupil count.
         (d)  For any  school  district  with  a  Low  Income
    Concentration  Level  of  60%  or more, the grant for the
    1998-99 school year shall be $1,900 multiplied by the low
    income eligible pupil count.
         (e)  For the 1999-2000 school year,  the  per  pupil
    amount  specified  in  subparagraphs  (b),  (c), and (d),
    immediately above shall be increased by $100  to  $1,200,
    $1,600, and $2,000, respectively.
         (f)  For  the  2000-2001  school year, the per pupil
    amounts specified  in  subparagraphs  (b),  (c)  and  (d)
    immediately  above  shall be increased to $1,230, $1,640,
    and $2,050, respectively.
    (3)  School districts with an Average Daily Attendance of
more than  1,000  and  less  than  50,000  that  qualify  for
supplemental  general  State  aid pursuant to this subsection
shall submit a plan to the State Board of Education prior  to
October  30  of  each year for the use of the funds resulting
from this grant of supplemental general  State  aid  for  the
improvement  of  instruction  in  which  priority is given to
meeting the education needs of disadvantaged children.   Such
plan   shall  be  submitted  in  accordance  with  rules  and
regulations promulgated by the State Board of Education.
    (4)  School districts with an Average Daily Attendance of
50,000 or more that qualify for  supplemental  general  State
aid   pursuant  to  this  subsection  shall  be  required  to
distribute from funds available pursuant to this Section,  no
less  than  $261,000,000  in  accordance  with  the following
requirements:
         (a)  The required amounts shall  be  distributed  to
    the  attendance centers within the district in proportion
    to the number  of  pupils  enrolled  at  each  attendance
    center  who are eligible to receive free or reduced-price
    lunches or breakfasts under the federal  Child  Nutrition
    Act  of  1966  and  under  the  National School Lunch Act
    during the immediately preceding school year.
         (b)  The   distribution   of   these   portions   of
    supplemental  and  general  State  aid  among  attendance
    centers according to  these  requirements  shall  not  be
    compensated  for  or  contravened  by  adjustments of the
    total of  other  funds  appropriated  to  any  attendance
    centers, and the Board of Education shall utilize funding
    from  one  or several sources in order to fully implement
    this provision annually prior to the opening of school.
         (c)  Each attendance center shall be provided by the
    school district a distribution  of  noncategorical  funds
    and other categorical funds to which an attendance center
    is entitled under law in order that the general State aid
    and   supplemental   general   State   aid   provided  by
    application of this subsection  supplements  rather  than
    supplants  the noncategorical funds and other categorical
    funds provided by the school district to  the  attendance
    centers.
         (d)  Any  funds made available under this subsection
    that by reason of the provisions of this  subsection  are
    not  required  to be allocated and provided to attendance
    centers may be used and appropriated by the board of  the
    district for any lawful school purpose.
         (e)  Funds received by an attendance center pursuant
    to this subsection shall be used by the attendance center
    at  the  discretion  of  the  principal  and local school
    council for programs to improve educational opportunities
    at qualifying schools through the following programs  and
    services:  early  childhood education, reduced class size
    or improved adult to student classroom ratio,  enrichment
    programs,  remedial  assistance,  attendance improvement,
    and other  educationally  beneficial  expenditures  which
    supplement  the  regular and basic programs as determined
    by the State Board of Education.   Funds  provided  shall
    not be expended for any political or lobbying purposes as
    defined by board rule.
         (f)  Each district subject to the provisions of this
    subdivision  (H)(4)  shall  submit  an acceptable plan to
    meet the educational needs of disadvantaged children,  in
    compliance  with  the  requirements of this paragraph, to
    the State Board of Education prior to  July  15  of  each
    year. This plan shall be consistent with the decisions of
    local  school  councils concerning the school expenditure
    plans developed in accordance  with  part  4  of  Section
    34-2.3.  The State Board shall approve or reject the plan
    within  60  days  after  its  submission.  If the plan is
    rejected, the  district  shall  give  written  notice  of
    intent   to  modify  the  plan  within  15  days  of  the
    notification of rejection and then submit a modified plan
    within 30 days after the date of the  written  notice  of
    intent  to  modify.    Districts may amend approved plans
    pursuant to rules  promulgated  by  the  State  Board  of
    Education.
         Upon  notification  by  the State Board of Education
    that the district has not submitted a plan prior to  July
    15  or  a  modified plan within the time period specified
    herein, the State aid funds  affected  by  that  plan  or
    modified  plan  shall  be  withheld by the State Board of
    Education until a plan or modified plan is submitted.
         If the district fails to  distribute  State  aid  to
    attendance  centers  in accordance with an approved plan,
    the plan for the following year shall allocate funds,  in
    addition   to   the  funds  otherwise  required  by  this
    subsection,  to  those  attendance  centers  which   were
    underfunded  during the previous year in amounts equal to
    such underfunding.
         For purposes of  determining  compliance  with  this
    subsection  in relation to the requirements of attendance
    center funding, each district subject to  the  provisions
    of this subsection shall submit as a separate document by
    December  1 of each year a report of expenditure data for
    the prior year in addition to  any  modification  of  its
    current  plan.  If it is determined that there has been a
    failure to comply with the expenditure provisions of this
    subsection regarding contravention  or  supplanting,  the
    State  Superintendent  of Education shall, within 60 days
    of receipt of the report, notify  the  district  and  any
    affected local school council.  The district shall within
    45  days of receipt of that notification inform the State
    Superintendent of Education of the remedial or corrective
    action to be taken, whether  by amendment of the  current
    plan,  if  feasible, or by adjustment in the plan for the
    following  year.   Failure  to  provide  the  expenditure
    report or the  notification  of  remedial  or  corrective
    action  in  a timely manner shall result in a withholding
    of the affected funds.
         The State Board of Education shall promulgate  rules
    and  regulations  to  implement  the  provisions  of this
    subsection.   No  funds  shall  be  released  under  this
    subdivision (H)(4) to any district that has not submitted
    a plan that has been  approved  by  the  State  Board  of
    Education.

(I)  General State Aid for Newly Configured School Districts.
    (1)  For  a  new  school  district  formed  by  combining
property   included  totally  within  2  or  more  previously
existing school districts, for its first  year  of  existence
the  general  State  aid  and  supplemental general State aid
calculated under this Section shall be computed for  the  new
district  and for the previously existing districts for which
property is totally included within the new district.  If the
computation on the basis of the previously existing districts
is greater, a supplementary payment equal to  the  difference
shall  be  made for the first 4 years of existence of the new
district.
    (2)  For a school  district  which  annexes  all  of  the
territory  of  one or more entire other school districts, for
the  first  year  during  which  the  change  of   boundaries
attributable  to  such  annexation  becomes effective for all
purposes as determined under Section 7-9 or 7A-8, the general
State aid and supplemental general State aid calculated under
this Section shall be computed for the annexing  district  as
constituted  after  the  annexation  and for the annexing and
each annexed district as constituted prior to the annexation;
and if the computation on  the  basis  of  the  annexing  and
annexed  districts  as constituted prior to the annexation is
greater, a supplementary  payment  equal  to  the  difference
shall  be  made  for  the  first  4 years of existence of the
annexing school district as constituted upon such annexation.
    (3)  For 2 or more school districts which  annex  all  of
the  territory  of one or more entire other school districts,
and for 2 or more community unit districts which result  upon
the  division  (pursuant  to petition under Section 11A-2) of
one or more other unit school districts into 2 or more  parts
and  which  together include all of the parts into which such
other unit school district or districts are so  divided,  for
the   first  year  during  which  the  change  of  boundaries
attributable to such annexation or division becomes effective
for all purposes as determined under Section 7-9  or  11A-10,
as  the  case  may be, the general State aid and supplemental
general State aid calculated  under  this  Section  shall  be
computed   for   each   annexing  or  resulting  district  as
constituted after the annexation or  division  and  for  each
annexing  and  annexed  district,  or  for each resulting and
divided district, as constituted prior to the  annexation  or
division;  and  if the aggregate of the general State aid and
supplemental  general  State  aid  as  so  computed  for  the
annexing or resulting  districts  as  constituted  after  the
annexation  or  division  is  less  than the aggregate of the
general State aid and supplemental general State  aid  as  so
computed  for  the annexing and annexed districts, or for the
resulting and divided districts, as constituted prior to  the
annexation or division, then a supplementary payment equal to
the  difference  shall be made and allocated between or among
the annexing or resulting districts, as constituted upon such
annexation or division,  for  the  first  4  years  of  their
existence.   The  total difference payment shall be allocated
between or among the annexing or resulting districts  in  the
same  ratio  as the pupil enrollment from that portion of the
annexed or divided district or districts which is annexed  to
or included in each such annexing or resulting district bears
to  the  total  pupil  enrollment  from the entire annexed or
divided district or districts, as such  pupil  enrollment  is
determined  for the school year last ending prior to the date
when the change of boundaries attributable to the  annexation
or  division  becomes effective for all purposes.  The amount
of the total difference payment and the amount thereof to  be
allocated  to  the  annexing  or resulting districts shall be
computed by the State Board of  Education  on  the  basis  of
pupil  enrollment  and other data which shall be certified to
the State Board of Education, on forms which it shall provide
for that purpose, by the regional superintendent  of  schools
for each educational service region in which the annexing and
annexed  districts,  or  resulting  and divided districts are
located.
    (3.5)  Claims  for  financial   assistance   under   this
subsection  (I)  shall  not be recomputed except as expressly
provided under this Section.
    (4)  Any supplementary payment made under this subsection
(I) shall be treated as separate from all other payments made
pursuant to this Section.

(J)  Supplementary Grants in Aid.
    (1)  Notwithstanding  any  other   provisions   of   this
Section,  the  amount  of  the aggregate general State aid in
combination with supplemental general State  aid  under  this
Section  for  which each school district is eligible shall be
no less than the amount of the aggregate  general  State  aid
entitlement  that  was received by the district under Section
18-8 (exclusive of amounts received  under  subsections  5(p)
and  5(p-5)  of  that  Section)  for the 1997-98 school year,
pursuant to the provisions of that Section as it was then  in
effect.   If   a  school  district  qualifies  to  receive  a
supplementary payment made under  this  subsection  (J),  the
amount of the aggregate general State aid in combination with
supplemental general State aid under this Section  which that
district is eligible to receive for each school year shall be
no  less  than  the amount of the aggregate general State aid
entitlement that was received by the district  under  Section
18-8  (exclusive  of  amounts received under subsections 5(p)
and 5(p-5) of that Section) for the  1997-1998  school  year,
pursuant  to the provisions of that Section as it was then in
effect.
    (2)  If, as provided in paragraph (1) of this  subsection
(J),  a school district is to receive aggregate general State
aid in combination with supplemental general State aid  under
this  Section  for the 1998-99 school year and any subsequent
school year that in any such school year  is  less  than  the
amount  of  the  aggregate general State aid entitlement that
the district received for the 1997-98 school year, the school
district shall also receive, from  a  separate  appropriation
made  for  purposes  of  this subsection (J), a supplementary
payment that is equal to the amount of the difference in  the
aggregate State aid figures as described in paragraph (1).
    (3)  (Blank).

(K)  Grants to Laboratory and Alternative Schools.
    In  calculating  the  amount  to be paid to the governing
board of a  public  university  that  operates  a  laboratory
school  under  this Section or to any alternative school that
is operated by a  regional  superintendent  of  schools,  the
State Board of Education shall require by rule such reporting
requirements as it deems necessary.
    As  used  in  this  Section,  "laboratory school" means a
public school which is  created  and  operated  by  a  public
university and approved by the State Board of Education.  The
governing  board  of a public university which receives funds
from the State  Board  under  this  subsection  (K)  may  not
increase  the  number  of students enrolled in its laboratory
school from a single district, if that  district  is  already
sending  50 or more students, except under a mutual agreement
between the school board of a student's district of residence
and the university which operates the laboratory  school.   A
laboratory  school  may  not  have  more than 1,000 students,
excluding students with disabilities in a  special  education
program.
    As  used  in  this  Section, "alternative school" means a
public school which is created and  operated  by  a  Regional
Superintendent  of Schools and approved by the State Board of
Education. Such alternative  schools  may  offer  courses  of
instruction  for  which  credit  is  given  in regular school
programs, courses to prepare students  for  the  high  school
equivalency  testing  program  or vocational and occupational
training.  A regional superintendent of schools may  contract
with a school district or a public community college district
to  operate  an  alternative  school.   An alternative school
serving more than  one  educational  service  region  may  be
established  by  the  regional  superintendents of schools of
those  the  affected  educational  service   regions.      An
alternative  school serving more than one educational service
region may be operated  under  such  terms  as  the  regional
superintendents  of  schools  of  those  educational  service
regions may agree.
    Each  laboratory  and  alternative  school shall file, on
forms provided by the State Superintendent of  Education,  an
annual  State  aid  claim  which  states  the  Average  Daily
Attendance  of  the  school's  students by month.  The best 3
months' Average Daily Attendance shall be computed  for  each
school.  The  general State aid entitlement shall be computed
by multiplying the applicable Average Daily Attendance by the
Foundation Level as determined under this Section.

(L)  Payments,   Additional   Grants   in   Aid   and   Other
Requirements.
    (1)  For a school district operating under the  financial
supervision  of  an  Authority created under Article 34A, the
general State aid otherwise payable to  that  district  under
this  Section,  but  not  the supplemental general State aid,
shall be reduced by an amount equal to  the  budget  for  the
operations  of the Authority as certified by the Authority to
the State Board of Education, and an  amount  equal  to  such
reduction  shall  be  paid  to the Authority created for such
district for its operating expenses in the manner provided in
Section 18-11.  The remainder of general State school aid for
any such district shall be paid in  accordance  with  Article
34A  when  that Article provides for a disposition other than
that provided by this Article.
    (2)  Impaction.  Impaction  payments  shall  be  made  as
provided for in Section 18-4.2.
    (3)  Summer school.  Summer school payments shall be made
as provided in Section 18-4.3.

(M)  Education Funding Advisory Board.
    The Education Funding Advisory Board, hereinafter in this
subsection (M) referred to as the "Board", is hereby created.
The Board shall consist of 5 members who are appointed by the
Governor,  by  and with the advice and consent of the Senate.
The  members  appointed  shall  include  representatives   of
education,  business,  and  the  general  public.  One of the
members so appointed shall be designated by the  Governor  at
the  time  the  appointment is made as the chairperson of the
Board. The initial members of the Board may be appointed  any
time after the effective date of this amendatory Act of 1997.
The  regular  term of each member of the Board shall be for 4
years from the third Monday of January of the year  in  which
the  term  of the member's appointment is to commence, except
that of the 5 initial  members  appointed  to  serve  on  the
Board,  the  member who is appointed as the chairperson shall
serve for a term that commences on the date  of  his  or  her
appointment and expires on the third Monday of January, 2002,
and  the  remaining  4  members,  by  lots drawn at the first
meeting of the Board that is held after  all  5  members  are
appointed,  shall  determine  2  of their number to serve for
terms  that  commence  on  the  date  of   their   respective
appointments and expire on the third Monday of January, 2001,
and 2 of their number to serve for terms that commence on the
date of their respective appointments and expire on the third
Monday  of  January, 2000.  All members appointed to serve on
the Board shall serve until their respective  successors  are
appointed  and  confirmed.   Vacancies shall be filled in the
same manner  as  original  appointments.   If  a  vacancy  in
membership  occurs  at  a  time  when  the  Senate  is not in
session, the Governor  shall  make  a  temporary  appointment
until  the  next  meeting of the Senate, when he or she shall
appoint, by and with the advice and consent of the Senate,  a
person  to  fill  that membership for the unexpired term.  If
the Senate is not in session when  the  initial  appointments
are  made, those appointments shall be made as in the case of
vacancies.
    The Education Funding  Advisory  Board  shall  be  deemed
established,   and  the  initial  members  appointed  by  the
Governor to serve as members of the Board shall take  office,
on the date that the Governor makes his or her appointment of
the  fifth initial member of the Board, whether those initial
members  are  then  serving  pursuant  to   appointment   and
confirmation  or  pursuant to temporary appointments that are
made by the Governor as in the case of vacancies.
    The State Board of Education  shall  provide  such  staff
assistance  to  the  Education  Funding  Advisory Board as is
reasonably required for the proper performance by  the  Board
of its responsibilities.
    For  school  years  after  the 2000-2001 school year, the
Education Funding Advisory Board, in  consultation  with  the
State  Board  of  Education,  shall  make  recommendations as
provided in this subsection (M) to the General  Assembly  for
the foundation level under subdivision (B)(3) of this Section
and  for the supplemental general State aid grant level under
subsection (H)  of  this  Section  for  districts  with  high
concentrations  of  children  from  poverty.  The recommended
foundation level shall be determined based on  a  methodology
which   incorporates  the  basic  education  expenditures  of
low-spending schools exhibiting  high  academic  performance.
The   Education   Funding  Advisory  Board  shall  make  such
recommendations to the General Assembly on January 1  of  odd
numbered years, beginning January 1, 2001.

(N)  General State Aid Adjustment Grant.
    (1)  Any   school   district   subject  to  property  tax
extension limitations as imposed under the provisions of  the
Property  Tax  Extension  Limitation Law shall be entitled to
receive, subject to the qualifications  and  requirements  of
this  subsection,  a  general  State  aid  adjustment  grant.
Eligibility  for  this grant shall be determined on an annual
basis and claims for grant payments shall be paid subject  to
appropriations   made   specific  to  this  subsection.   For
purposes of this subsection the following  terms  shall  have
the following meanings:
    "Budget  Year":   The school year for which general State
aid is calculated and awarded under subsection (E).
    "Current Year":  The school  year  immediately  preceding
the Budget Year.
    "Base  Tax  Year":   The  property  tax levy year used to
calculate the Budget Year allocation of general State aid.
    "Preceding  Tax  Year":   The  property  tax  levy   year
immediately preceding the Base Tax Year.
    "Extension   Limitation   Ratio":   A   numerical  ratio,
certified by a school district's County Clerk, in  which  the
numerator  is  the  Base  Tax  Year's  tax  extension  amount
resulting  from  the Limiting Rate and the denominator is the
Preceding Tax Year's tax extension amount resulting from  the
Limiting Rate.
    "Limiting  Rate":   The  limiting  rate as defined in the
Property Tax Extension Limitation Law.
    "Preliminary Tax Rate": The tax  rate  for  all  purposes
except  bond and interest that would have been used to extend
those  taxes  absent  the  provisions  of  the  Property  Tax
Extension Limitation Law.
    (2)  To qualify for a general State aid adjustment grant,
a school district must meet all of the following  eligibility
criteria for each Budget Year for which a grant is claimed:
         (a)  (Blank).
         (b)  The Preliminary Tax Rate of the school district
    for  the  Base  Tax  Year was reduced by the Clerk of the
    County as a result of the requirements  of  the  Property
    Tax Extension Limitation Law.
         (c)  The  Available Local Resources per pupil of the
    school district as calculated pursuant to subsection  (D)
    using the Base Tax Year are less than the product of 1.75
    times the Foundation Level for the Budget Year.
         (d)  The  school  district  has  filed  a proper and
    timely claim for a general State aid adjustment grant  as
    required under this subsection.
    (3)  A  claim  for grant assistance under this subsection
shall be filed with the State Board of Education on or before
April 1 of the Current Year for a grant for the Budget  Year.
The  claim  shall  be  made  on forms prescribed by the State
Board of Education and  must  be  accompanied  by  a  written
statement from the Clerk of the County, certifying:
         (a)  That  the  school  district had its Preliminary
    Tax Rate for the Base Tax Year reduced as a result of the
    Property Tax Extension Limitation Law.
         (b)  (Blank).
         (c)  The Extension Limitation Ratio as that term  is
    defined in this subsection.
    (4)  On  or  before August 1 of the Budget Year the State
Board of Education shall calculate, for all school  districts
meeting the other requirements of this subsection, the amount
of  the  general State aid adjustment grant, if any, that the
school districts are eligible to receive in the Budget  Year.
The amount of the general State aid adjustment grant shall be
calculated as follows:
         (a)  Determine  the  school district's general State
    aid grant for the Budget Year as provided  in  accordance
    with the provisions of subsection (E).
         (b)  Determine  the school district's adjusted level
    of general State aid by utilizing in the  calculation  of
    Available   Local   Resources   the   equalized  assessed
    valuation that was used to calculate  the  general  State
    aid  for  the  preceding  fiscal  year  multiplied by the
    Extension Limitation Ratio.
         (c)  Subtract the sum derived  in  subparagraph  (a)
    from  the sum derived in subparagraph (b).  If the result
    is a positive number, that amount shall  be  the  general
    State  aid adjustment grant that the district is eligible
    to receive.
    (5)  The State Board of Education shall  in  the  Current
Year,  based upon claims filed in the Current Year, recommend
to the General  Assembly  an  appropriation  amount  for  the
general  State aid adjustment grants to be made in the Budget
Year.
    (6)  Claims for general State aid adjustment grants shall
be paid in a lump sum on or before January 1  of  the  Budget
Year  only  from  appropriations made by the General Assembly
expressly for claims under this subsection.  No  such  claims
may  be  paid from amounts appropriated for any other purpose
provided for under this  Section.   In  the  event  that  the
appropriation   for   claims   under   this   subsection   is
insufficient  to  meet  all  Budget Year claims for a general
State aid adjustment grant, the appropriation available shall
be proportionately prorated by the State Board  of  Education
amongst all districts filing for and entitled to payments.
    (7)  The  State  Board  of Education shall promulgate the
required claim forms and rules  necessary  to  implement  the
provisions of this subsection.

(O)  References.
    (1)  References in other laws to the various subdivisions
of Section 18-8 as that Section existed before its repeal and
replacement  by this Section 18-8.05 shall be deemed to refer
to the corresponding provisions of this Section  18-8.05,  to
the extent that those references remain applicable.
    (2)  References  in  other  laws to State Chapter 1 funds
shall be deemed to refer to the  supplemental  general  State
aid provided under subsection (H) of this Section.
(Source:  P.A.  90-548,  eff.  7-1-98;  incorporates  90-566;
90-653,  eff.  7-29-98;  90-654,  eff.  7-29-98; 90-655, eff.
7-30-98; 90-802, eff. 12-15-98; revised 12-24-98.)

    Section 99.  Effective date.  This Act takes effect  upon
becoming law.

[ Top ]